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- The productivity paradox was popularized in a widely-cited article by Erik Brynjolfsson, which noted the apparent contradiction between the remarkable advances in computer power and the relatively slow growth of productivity at the level of the whole economy, individual firms and many specific applications. The concept is sometimes referred to as the Solow computer paradox in reference to Robert Solow's 1987 quip, "You can see the computer age everywhere but in the productivity statistics. " The paradox has been defined as the “discrepancy between measures of investment in information technology and measures of output at the national level. ” It was widely believed that office automation was boosting labor productivity. However, the growth accounts didn't seem to confirm the idea. From the early 1970s to the time Solow was writing there was a massive slow-down in growth as the machines were becoming ubiquitous. (Other variables in country's economies were changing simultaneously; growth accounting separates out the improvement in production output using the same capital and labour resources as input by calculating growth in total factor productivity, AKA the "Solow residual". ) For understanding the paradox, different authors have identified different requirements. In his original article, Brynjolfsson (1993) identified four possible explanations: mismeasurement, redistribution, time lags and mismanagement. Turban, et al. (2008), mention that understanding the paradox requires an understanding of the concept of productivity. Pinsonneault et al. (1998) state that for untangling the paradox an “understanding of how IT usage is related to the nature of managerial work and the context in which it is deployed” is required. One hypothesis to explain the productivity paradox is that computers are productive, yet their productive gains are realized only after a lag period, during which complementary capital investments must be developed to allow for the use of computers to their full potential. Another hypothesis states that computers are simply not very productivity enhancing because they require time, a scarce complementary human input. This theory holds that although computers perform a variety of tasks, these tasks are not done in any particularly new or efficient manner, but rather they are only done faster. Current data does not confirm the validity of either hypothesis. It could very well be that increases in productivity due to computers is not captured in GDP measures, but rather in quality changes and new products. Economists have done research in the productivity issue and concluded that there are three possible explanations for the paradox. The explanations can be divided in three categories: Data and analytical problems hide ´´productivity-revenues´´. The ratios for input and output are sometimes difficult to measure, especially in the service sector. Revenues gained by a company through productivity will be hard to notice because there might be losses in other divisions/departments of the company. So it is again hard to measure the profits made only through investments in productivity. Revenues are unnoticed because of losses and expenses: there might be a third possibility; information technology doesn’t raise the productivity. For example: the output can increase with 50%, but if the input increases with 60% there will be a decrease in productivity. Another answer, from economists Stephen Oliner & Dan Sichel was to deny the significance of the (high-profile) IT-sector; they said that information technology accounted for no more than two percent of the capital stock in any country in the world. Other economists have made a more controversial charge against the utility of computers: that they pale into insignificance as a source of productivity advantage when compared to the true industrial revolution, or the adoption of the motor car. A number of explanations of this have been advanced, including: The tendency - at least initially - of computer technology to be used for applications that have little impact on overall productivity, e.g. word processing. inefficiencies arising from running manual paper-based and computer-based processes in parallel, requiring two separate sets of activities and human effort to mediate between them - usually considered a technology alignment problem poor user interfaces that confuse users, prevent or slow access to time-saving facilities, are internally inconsistent both with each other and with terms used in work processes - a concern addressed in part by enterprise taxonomy extremely poor hardware and related boot image control standards that forced users into endless "fixes" as operating systems and applications clashed - addressed in part by single board computers and simpler more automated re-install procedures, and the rise of software specifically to solve this problem, e.g. Norton Ghost technology-driven change driven by companies such as Microsoft which profit directly from more rapid "upgrades" an emphasis on presentation technology and even persuasion technology such as PowerPoint, at the direct expense of core business processes and learning - addressed in some companies including IBM and Sun Microsystems by creating a PowerPoint-Free Zone the blind assumption that introducing new technology must be good A paper by Triplett (1999) reviews Solow’s paradox from seven other often given explanations. They are: You don’t see computers “everywhere,” in a meaningful economic sense You only think you see computers everywhere You may not see computers everywhere, but in the industrial sectors where you most see them, output is poorly measured Whether or not you see computer everywhere, some of what they do is not counted in economic statistics You don’t see computers in the productivity yet, but wait a bit and you will You see computers everywhere but in the productivity statistics because computers are not as productive as you think There is no paradox: some economists are counting innovations and new products on an arithmetic scale when they should count on a logarithmic scale For the actual evaluations of the explanations, read the article (see references). By the late 1990s there were some signs that productivity in the workplace had improved, especially in the United States. In fact, Erik Brynjolfsson and his colleagues largely debunked the paradox when they found a significant positive relationship between IT investments and productivity in a series of studies. However, new problems had emerged, including: email spam malware on computer networks use of entertainment oriented games, web services or even porn at work
- Als Produktivitätsparadoxon der Informationstechnologie wird die durch empirische Studien untermauerte Hypothese bezeichnet, dass, insbesondere im Dienstleistungssektor, kein positiver Zusammenhang zwischen Investitionen in die Informations- und Kommunikationstechnologie und der Produktivität auf volkswirtschaftlicher oder unternehmerischer Ebene zu bestehen scheint. Erklärungsansätze hierfür sind neben Fehlern in der Messmethodik u.a. : Verzögerung zwischen IT-Einsatz und Wirkung (Nutzer müssen erst mit dem neuen System umgehen lernen) Managementfehler und unzureichende Nutzung der Potentiale beim Einsatz der Technologie Gewinndistribution zwischen Unternehmen und Unternehmensteilen Negative Auswirkungen des Informationszuwachses Negative Auswirkungen durch den Aufwand der mit der Einführung der Technologie erforderlichen Reorganisation der Arbeitsabläufe. Moderne Studien (McKinsey 2001, Farrell 2003) weisen auf branchenspezifische Unterschiede bei der Rentabilitätssteigerung hin. So konnten in der Computer- und Halbleiterfertigung, der Telekommunikation, dem Groß- und Einzelhandel und dem Wertschriftenhandel durch den Einsatz von IT-Technologie sehr wohl signifikante Rentabilitätssteigerungen erreicht werden. Des Weiteren scheinen Faktoren außerhalb des IT-Kernbereichs eine wichtige Rolle, was den erfolgreichen Einsatz von IT-Technologie angeht, zu spielen. Insbesondere ist eine kontinuierliche Abstimmung der IT auf die Geschäftsprozesse, Strukturen und Praktiken notwendig um eine wirkliche Rentabilitätssteigerung zu erreichen.
- Tuottavuusparadoksi on ilmiö, jossa tuottavuus ei lisäänny, vaikka sijoituksia tietotekniikkaan lisätään. Paradoksi selittyy sillä, että tietotekniikalla ei itsessään ole työtä tehostavaa vaikutusta, vaan myös ihmisten työtapoja tulee muuttaa. Kyseessä olevissa tapauksissa käy siis niin, että tietotekniikalla automatisoidaan jo valmiiksi turhia toimintoja, jolloin ainoastaan niitä suoritetaan tehokkaammin. Tuottavuusparadoksin tutkiminen liittyy lähinnä tietojärjestelmätieteen piiriin.
- De productiviteitsparadox is de kennelijke tegenstrijdigheid tussen zeer vergaande investeringen in de informatietechnologie en de relatief lage metingen van productiviteit in de nationale economie.
- Produktivitetsparadoxen är ett ekonomiskt problem som innebär att då ny teknologi introducerats under 1980- och 1990-talet har produktiviteten gått ner istället för att gå upp, vilket vore det logiska vid introduktion av ny och mer effektiv teknik. Ett svar på denna paradox har tagits fram av en svensk professor i ekonomisk historia, Lennart Schön. Han hävdar att detta är historiskt belagt, då 1980- och 1990-talet var en introduktionsfas till den nya teknologin, medan de kommande årtiondena, 2000- och 2010-talet, kommer vara en tillvänjningsfas, och att produktiviteten och tillväxten därför kommer att öka under de kommande tjugo åren.
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- The productivity paradox was popularized in a widely-cited article by Erik Brynjolfsson, which noted the apparent contradiction between the remarkable advances in computer power and the relatively slow growth of productivity at the level of the whole economy, individual firms and many specific applications. The concept is sometimes referred to as the Solow computer paradox in reference to Robert Solow's 1987 quip, "You can see the computer age everywhere but in the productivity statistics.
- Als Produktivitätsparadoxon der Informationstechnologie wird die durch empirische Studien untermauerte Hypothese bezeichnet, dass, insbesondere im Dienstleistungssektor, kein positiver Zusammenhang zwischen Investitionen in die Informations- und Kommunikationstechnologie und der Produktivität auf volkswirtschaftlicher oder unternehmerischer Ebene zu bestehen scheint. Erklärungsansätze hierfür sind neben Fehlern in der Messmethodik u.a.
- Tuottavuusparadoksi on ilmiö, jossa tuottavuus ei lisäänny, vaikka sijoituksia tietotekniikkaan lisätään. Paradoksi selittyy sillä, että tietotekniikalla ei itsessään ole työtä tehostavaa vaikutusta, vaan myös ihmisten työtapoja tulee muuttaa. Kyseessä olevissa tapauksissa käy siis niin, että tietotekniikalla automatisoidaan jo valmiiksi turhia toimintoja, jolloin ainoastaan niitä suoritetaan tehokkaammin.
- De productiviteitsparadox is de kennelijke tegenstrijdigheid tussen zeer vergaande investeringen in de informatietechnologie en de relatief lage metingen van productiviteit in de nationale economie.
- Produktivitetsparadoxen är ett ekonomiskt problem som innebär att då ny teknologi introducerats under 1980- och 1990-talet har produktiviteten gått ner istället för att gå upp, vilket vore det logiska vid introduktion av ny och mer effektiv teknik. Ett svar på denna paradox har tagits fram av en svensk professor i ekonomisk historia, Lennart Schön.
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